The online foreign exchange and contracts for difference (CFD) provider FXCM have just announced the launch of a cryptocurrency basket for its retail customers, including five digital currencies in the process.
For those that don’t know, FXCM (Forex Capital Markets) is a retail broker for trading on the foreign exchange market. FXCM will allow traders and investors to speculate on the foreign platform market and provide trading in contract for difference on major indices and commodities. Founded in 1999, the company has become very successful with its parent firm Jefferies Financial Group going for more than five decades based in New York.
According to a recent press release, the cryptocurrency basket dubbed CryptoMajor will allow the firm’s retail clients to gain exposure in Litecoin, Bitcoin Cash, Ripple’s XRP, Ethereum and Bitcoin. It will look at each individual coin equally rather than adding more exposure to a coin like bitcoin like many other baskets in the industry.
The company’s CEO, Brendan Callan highlighted that trading a crypto basket means FXCM’s users are “freed from the hassle of constantly monitoring the markets.” The CEO went onto note:
“CryptoMajor therefore streamlines the trading process and protects our customers from unanticipated and adverse market movements. It is a great opportunity for our customers who are looking to move into Crypto trading but don’t want to risk too much overexposure.”
For those that don’t know, a CFD is an arrangement where the difference in the settlement between the open and closing prices of an underlying asset is settled in cash, meaning there isn’t a physical delivery of the cryptocurrency.
Back in May, FXCM allegedly added CFD’s for two cryptocurrencies, those being XRP and Bitcoin Cash.
It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!